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October 2022 #14279 Page #24
Including Meaningful Process Improvement on Your Capital Investment Checklist Todd Drummond
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ime and time again, TDC has witnessed too many companies spending millions on capital investments to achieve marginal improvements while others spend far less and achieve spectacular results. It may feel obvious that adding a saw or auto-puck table will significantly enhance output, but the reality often falls far short of the promised results. It is far easier for many to risk spending millions on new equipment and buildings, but an investment of a few thousand for formal training in proper process enhancement has been deemed a step too far. Why is investing in meaningful process improvement not part of every company’s yearly checklist? One might be asking, what is meaningful process improvement? Well, process improvement covers all processes that happen within any company. For example, HR, manufacturing, design, sales, admin, and capital improvement discussions are all part of the process improvement umbrella. Process improvement is at the heart of the continuous improvement philosophy embedded in successful lean manufacturing. For a fraction of the millions spent on capital improvements, the investment in process improvement can be measured in the hundreds of thousands, if not millions. What would the return for your company be for a 3-point gain in net profits year after year? Just FYI, a 3-point increase is a very low bar. Employer HR practices. Time and time again, many are stating that finding enough talented and dependable employees is becoming a growing problem. That statement is far more accurate than most understand. More people will be leaving the workforce for the foreseeable future than coming into it. In the US, it will be 400k fewer new workers per year for the next nine years. As a percentage, Canada’s demographics are even worse. (Source: Peter Zeihan, The Trade Breakdown | Upfront Summit 2020)
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